Technical efficiency of sugarcane monoculture and sugarcane- soybean integration among smallholder farmers in Awendo Sub-County, Kenya

Abstract

Sugarcane and soybean are emerging value chains in Awendo Sub-County of Kenya with the potential for alleviating the perpetual problems of food and nutrition insecurity, poverty and unemployment among the rural households. Agricultural extension officers have educated farmers on the economic benefits of sugarcane-soybean integration but the uptake and performance of this cropping system has not been evaluated. This study therefore aimed at contributing to increase in farmer’s household income by improving the level of technical efficiency of sugarcane and soybean production among smallholder farmers in Kenya .The study was based on utility maximization theory and the production theory of the firm. A semi-structured questionnaire was used to collect cross-sectional data from smallholder sugarcane and soybean farmers administered by trained enumerators. A sample of 246 sugarcane and soybean farmers was obtained using multi-stage sampling method. The sample comprised of 154 sugarcane monoculture farmers and 92 sugarcane-soybean intercrop farmers. A logit model was used to assess the socio-economic characteristics influencing the choice of cropping systems among smallholder sugarcane farmers while a Cobb Douglas stochastic production frontier model was used to estimate technical efficiency of sugarcane and soybean production among smallholder farmers in Awendo Sub-County. A two- limit Tobit model was used to identify factors influencing technical efficiency and Stochastic Frontier Analysis was used to estimate the efficiency levels. Sugarcane farming experience, age of the farmer, acreage, marital status (divorce and widowed) and land ownership were the factors influencing the choice of sugarcane cropping system. Results have shown that sugarcane-soybean integrators were more efficient than sugarcane monoculture farmers and the variable land under sugarcane production was the single most important variable in influencing farmers’ efficiency. The mean technical efficiency of 62% and 64 % showed that the potential exist to increase output by 38% and 36% for non-integrators and integrators respectively with the present technology. This study recommends that sugarcane farmers be encouraged to allocate part of their land to production of soybean to enhance food security and improve household income. It further recommends that there is need for training sugarcane and soybean farmers on farm inputs optimum utilization by the extension agents in Awendo Sub-County, Kenya.